While casino gambling has expanded across the country in the past four decades, it’s rare for a state to do so much all at once. It is very unusual to see a casino authorized in one of the country’s largest cities.
“The next step here for the bill is for Governor Pritzker to sign it, and given he has been supportive of expanded gaming thus far, this is probably a done deal,” Joseph Greff, an analyst at JPMorgan Chase & Co., said in a note. “Possible litigation can be filed as a way to delay, but it likely won’t derail the bill’s eventuality.”The legislation is expected to be a boon for makers of slot machines and suppliers of technology for online betting. It will mean more competition for the state’s existing casinos, including ones operated by Caesars Entertainment Corp., Boyd Gaming Corp., Penn National Gaming Inc. and Eldorado Resorts Inc., which all derive between 10% and 15% of their revenue from Illinois or Indiana, according to John DeCree, an analyst with Union Gaming in Las Vegas.
Shares of slot-machine maker Scientific Games Corp. jumped as much as 9.4% on Monday, while rival International Game Technology rose 5.2%. Penn National fell as much as 5.8% over fears about the mounting competition.
Closely held Rush Street Gaming operates one of the closest casinos to Chicago: the Rivers Casino in Des Plaines, Illinois. A spokesman declined to comment on the company’s plans. Caesars operates the Horseshoe casino in nearby Hammond, Indiana. A representative there also declined to comment.The legislation also allows for additional slot machines in truck stops throughout the state.